19/02/2026

BIZ & FINANCE THURSDAY | FEB 19, 2026 17 UK January inflation falls to 3%, lowest in almost one year LONDON: Britain’s annual rate of consumer price inflation in January fell to its lowest since March last year but a measure of underlying price pressures, closely watched by the Bank of England (BoE), remained strong, official figures showed yesterday. Consumer prices rose by 3% in annual terms last month, slowing from a 3.4% increase in December, the Office for National Statistics (ONS) said, as transport, food and non-alcoholic drink prices rose less quickly. A Reuters poll of economists had shown a median forecast for headline inflation of 3% in January. The BoE projected earlier this month that it would ease to 2.9%. Yesterday’s data showed inflation for services – closely watched as a gauge of domestic price pressures by the BoE – slowed by less-than-expected to 4.4% from 4.5% in December, above poll expectations for a fall to 4.3%. British inflation has run higher than in the United States and in the eurozone where it stood at 2.4% and 1.7% respectively in January. Sterling was little changed against the US dollar after the ONS data. The BoE expects the pace of price rises to slow sharply to almost its 2% target in April as last year’s rises in utility costs and other government-controlled tariffs fall out of the annual comparison. Investors mostly expect the central bank to cut its benchmark interest rate to 3.5% in March after a tight vote to keep borrowing costs on hold in February. However, some policymakers remain worried about underlying inflation pressure. Financial markets on Tuesday priced a second quarter-point interest rate cut by the BoE by the end of in 2026. ONS data last week painted a downbeat picture of Britain’s economy at the end of 2025 with output barely growing. Figures released on Tuesday showed the labour market was still losing jobs although there were some signs of a stabilisation. – Reuters Thai industrial mood brightens but strong baht remains a concern BANGKOK: Thailand’s industrial sentiment index rose in January due to government measures and tourism, the Federation of Thai Industries (FTI) said yesterday. The FTI said its industrial sentiment index rose to 88.7 in January from 88.2 in December. Another index, which projects sentiment over the next three months, edged up to 95.9 from 95.7, boosted by tourism and expectations that a new government would roll out stimulus and boost confidence. The sentiment survey was conducted before the Feb 8 elections .Prime Minister Anutin Charnvirakul’s party won the elections and has announced a coalition that gives it a majority in parliament. The new administration is expected to speed up trade talks with partners other than the United States, such as Europe, FTI vice-chairman Nava Chantanasurakon said. The strengthening of the baht, which rose 9% against the dollar last year, remains a concern as it is reducing exporters’ competitiveness, the FTI said. The economy grew at an annual rate of 2.5% in the final quarter of 2025, above expectations, and expanded 2.4% for the full year. – Reuters

Japan to invest US$36b in 3 US infrastructure projects

supplier,“ Lutnick said. The facility making synthetic diamond grit – where China dominates supplies – will ensure that the United States is no longer reliant on foreign imports, Lutnick said. “Japan is providing the capital (for all three projects). The infrastructure is being built in the United States,” the US commerce secretary added. “The proceeds are structured so Japan earns its return, and America gains strategic assets, expanded industrial capacity, and strengthened energy dominance,” he said. In July, Tokyo had agreed to invest US$550 billion through 2029 “to rebuild and expand core American industries,“ according to the White House. The pledge was made in exchange for reducing threatened US tariffs of 25% to 15% on Japanese imports. Japanese trade minister Ryosei Akazawa has said that only 1% to 2% of the US$550 billion would be actual capital. The rest will be made up of bonds and loans from the Japan Bank for International Cooperation and credits with public guarantees. The clock has been ticking ahead of Takaichi’s planned White House visit on March 19, and according to media reports, tempers were starting to fray.

o They are a natural gas complex in Ohio, a deep-water oil export facility in the Gulf of Mexico, and a synthetic diamond manufacturing plant

WASHINGTONL The United States announced on Tuesday a first tranche of investments by Japan out of a colossal US$550 billion (RM2.14 trillion) promised by Tokyo in its trade deal with President Donald Trump. The commitments of US$36 billion for three infrastructure projects came as Japan comes under pressure to deliver on its pledges made in 2025 in return for lower US trade tariffs. “Japan is now officially, and financially, moving forward with the FIRST set of Investments under its US$550 BILLION Dollar Commitment to invest in the United States of America,” Trump wrote on his Truth Social platform. “The scale of these projects are so large, and could not be done without one very special word, TARIFFS,” he wrote. The announcement came ahead of a scheduled trip by Prime Minister Sanae Takaichi to the White House next month following Trump’s visit to Japan in October. Takaichi said yesterday the projects would “strengthen the Japan-US alliance by enabling Japan and the United States to jointly build resilient supply chains in strategically important areas for economic security – such as critical minerals, energy, and AI/data centres”. “We believe these initiatives truly embody the purpose of this Strategic Investment TOKYO: Japan’s exports jumped in January and manufacturers’ confidence improved this month, data showed yesterday, offering Tokyo some hope that robust Asian demand will help shore up a stuttering economy as it navigates global and domestic risks. Prime Minister Sanae Takaichi’s tax cut and spending plans could inject much needed momentum, analysts say, but she faces the challenge of avoiding a renewed yen and bond selloff that jolted investor confidence last month. Takaichi’s fiscal pledge has also created policy tensions between her administration and the Bank of Japan (BOJ), which has committed to normalising monetary settings in the world’s fourth-biggest economy after years of near-zero borrowing costs. The International Monetary Fund (IMF) said yesterday Japan’s economy has displayed “impressive resilience” to global shocks, but warned that risks were tilted to the downside due to rising trade frictions including from strained relations with China. “An abrupt deterioration of financial conditions could weaken confidence and domestic demand. Domestically, the main risk remains weak consumption if real wage growth fails to turn positive,” the IMF said in its policy recommendation to Japan. Japan’s total exports rose 16.8% year-on-year in January, data showed, the biggest jump in more than three years on robust shipments to China reflecting a surge in demand ahead of the Lunar New Year in mid-February. A Reuters poll also showed manufacturers’ confidence rose for the first time in three months in February, underpinned by stronger machinery orders and a weaker yen. The outcome follows separate data this week that showed the economy limped back to meagre growth in the fourth quarter, sharply undershooting market expectations due to

Initiative, namely the promotion of mutual benefit between Japan and the United States, the enhancement of economic security, and the promotion of economic growth,” Takaichi said on X. “Going forward, we will continue to work closely together between Japan and the United States to further refine the details of each project and ensure that they can be implemented promptly and smoothly,” she added. The projects are a natural gas facility in Ohio, a deep-water oil export facility in the Gulf of Mexico, and a synthetic diamond manu facturing facility. US Trade Secretary Howard Lutnick called the announcements the “Massive America First Trade Win”. The natural gas generation facility will be the “largest in history”, generating 9.2 gigawatts of power, Lutnick said on X. Takaichi said that it would supply electricity to AI data centres and similar facilities. At full capacity it would be the equivalent of nine nuclear reactors or the power consumed by about 7.4 million homes, Bloomberg News reported. The oil project will generate US$20-30 billion annually in US crude exports and “reinforce America’s position as the world’s leading energy

In January, Trump told South Korea – meant to invest US$350 billion – that he would raise tariffs because it was “not living up to its deal”. Analysts say that Japanese companies may be wary because of lack of clarity on the administrative and financial procedures and concerns about US labour shortages. – AFP Japanese exports jump, business sentiment improves

A woman walks past a luxury brand shop at a shopping district in Tokyo. In its policy recommendation, the IMF urged Japan to keep raising rates and avoid loosening fiscal policy further. – REUTERSPIC weaker-than-expected exports and capital expenditure.

nearly all goods. Analysts expect the Japanese economy to gather momentum with the help of domestic drivers such as private consumption, with wage growth expected to ease the burden on households from rising living costs. The sizeable spending plans of Takaichi, who took her ruling party to a landslide election win earlier this month, will likely underpin growth, analysts say. With the weak yen pushing up import costs and broader inflation, the BOJ is expected to continue raising still-low interest rates in a move that will increase the cost of funding Japan’s huge debt-pile. In its policy recommendation, the IMF urged Japan to keep raising rates and avoid loosening fiscal policy further, warning that trimming the consumption tax would erode its capacity to respond to future economic shocks. – Reuters

Analysts say the export jump in January was largely due to distortions caused by the timing of China’s Lunar New Year, which landed in January last year but in February this year. “Looking at the run of data over the last couple of months, Japan’s nominal goods trade is close to balance,“ said Stefan Angrick, head of Japan and Frontier markets Economics at Moody’s Analytics. “But the outlook is fraught with risks. Higher US import levies and foreign competition are already weighing on industrial output and export volumes,” he said. “Trade threats from China are an added concern.” Japan’s exports have been recovering after an initial blow from US tariffs hit US shipments in the July-September quarter. But momentum has remained fragile despite a September trade deal with Washington that set a baseline 15% tariff on